This paper presents a new synchronous-reference-frame (SRF)-based control method to compensate power-quality (PQ) problems through a three-phase four-wire unified PQ conditioner (UPQC) under unbalanced and distorted load conditions. The proposed UPQC system can improve the power quality at the point of common coupling on power distribution systems under unbalanced and distorted load conditions. The simulation results based on Matlab/Simulink are discussed in detail to support the SRF-based control method presented in this paper. The proposed approach is also validated through experimental study with the UPQC hardware prototype.